The government is preparing a major shake-up in the hottest segment of the real estate market—short-term rentals. Ministries and tourism bodies have begun drafting a plan to limit the number of Airbnbs on popular islands and tourist destinations. At the center of the debate is the most controversial proposal yet: imposing limits on the total number of days an Airbnb can be rented out per year and/or introducing licensing quotas, with municipalities and other local authorities playing a key role in setting timeframes and other restrictions. These proposals have already sparked a storm of reactions, opening rifts between ministries, local governments, and tourism entrepreneurs.

The new spatial framework

The new spatial planning scheme, which effectively outlines quotas for short-term rentals, has long stoked the flames of controversy. Simply put, in so-called “saturated areas”—such as Santorini, Mykonos, Corfu near the town, Zakynthos, Rhodes, Tinos, as well as Chania and Skiathos—the number of available Airbnb-style accommodations will not be allowed to exceed a set percentage compared to hotel beds. For example, if an island has 10,000 hotel beds, then short-term rentals will be limited to a ratio set by the Ministry of Tourism in collaboration with local authorities, with some proposals suggesting a cap as high as 50%.

But the restrictions don’t stop there. Even tighter measures are being considered, such as setting a limit on the number of days each property can be rented out. Discussions are pointing to a 120-day annual cap, while in areas facing high housing pressure—like urban centers or popular tourist zones—the limit could drop to just 90 days. The rationale is that the more homes are made available to tourists, the fewer are left for permanent residents, driving up rents and sparking social tensions.

Municipalities are demanding to have an active role in implementing the new plan. They want the authority to determine how many properties can be registered in the Short-Term Rental Registry, especially when more than 50% of local housing is already used for tourist purposes. On the other hand, the Ministry of National Economy and Finance, along with the Independent Authority for Public Revenue (AADE), strongly oppose this direction, drawing a red line to protect the €800 to €900 million in annual tax revenue generated by short-term rentals.